A bill to amend the Merchant Marine Act, 1936, to establish a new ship construction and reconstruction program to ensure adequate national defense capabilities, and for other purposes.

Amends the Merchant Marine Act, 1936, to establish a new shipbuilding program with respect to private charter operations.

Directs the Secretary of Transportation to order the construction of new vessels, and the reconstruction of older U.S.-built vessels, when it is determined necessary to achieve and maintain sealift capability sufficient to meet the requirements of national emergency military mobilization. Directs the Secretary to develop the basic design requirements for such vessels, including suitability for commercial uses and features which maximize military utility. Provides for the advice of and coordination with the Secretary of Defense in meeting such directives.

Requires that such shipbuilding only be undertaken at private shipyards in one of the States, Puerto Rico, or the District of Columbia. Requires the Secretary to award construction or reconstruction contracts in accordance with the Federal Property and Administrative Services Act.

Declares that funding for such shipbuilding shall be provided from the budget of the Department of Defense.

Sets forth provisions for the Secretary to charter or sell vessels built under this Act. Directs the Secretary, in the event a vessel is not chartered or sold, to place such vessel in the Ready Reserve Force of the National Defense Reserve Fleet.

Creates a revolving fund for the Secretary of Defense, for the deposit of appropriated sums and monies received from charter or sale, to carry out the purposes of this Act. Authorizes appropriations to the Department of Defense as necessary.